(For Those That Want To Know) what I’m watching.
On my show, Tuesday, I went into a bit of “technical analysis talk” describing what I was watching form (e.g., using the pennant analogy) and the probable odds of it resolving one way or the other. As of Wednesday evening it appears to be following precisely the direction I anticipated. However, with that said, let me also make the case that although these types of patterns have a very high degree of signalling a reversal, they also have just as high of a degree of being called too early, and can reverse on a dime till they finally resolve one way or another.
The only reason why I’m even putting this up for your viewing pleasure is that the entirety of the mainstream business/financial media is knocking over their mothers and grandmothers to get to the nearest camera, microphone or keyboard to proclaim: “This is just the next in the perpetual line of eternal BTFD (buy the f’n dip) moments. So Buy, buy, buy – then buy some more!! Because, the Fed’s got your back.”
Maybe it is, maybe it isn’t. Only time will tell. But for what it’s worth there still are things that are worth paying attention to from a technical viewpoint, and this is one of them.
I’m putting it up because this would be considered the very, and by this I mean just that, very first initial stages of what could become something very consequential based on other readings concerning this “Alice In Wonderland” imitating “market.”
Currently it appears everyone is “all in.” Yet, if this thing just hiccups the wrong way things could change direction with a speed that few care to remember. Here’s just one example of a possible hiccup…
17 States have now signed on to the case that looks more and more like it’s going up to the Supreme Court to challenge the election results. What this really challenges, as far as Wall Street is concerned, will be whether or not any stimulus will be forthcoming – and soon.
For without it?
Well, we’ll just have to wait and let the “market” tell us that answer.
Here’s the aforementioned chart. To wit:
© 2020 Mark St. Cyr
Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.